Repossessions could double as debts increase

More than one family a day in Rochdale faces the threat of having their home repossessed. One hundred and five repossession claims were made by mortgage lenders in the borough between October and December. The figure has risen by nearly a third on the same period last year – making Rochdale one of the worst areas in the country.

More than one family a day in Rochdale faces the threat of having their home repossessed.

One hundred and five repossession claims were made by mortgage lenders in the borough between October and December.

The figure has risen by nearly a third on the same period last year – making Rochdale one of the worst areas in the country.

While repossessions in the borough soar, across the rest of the country the figure fell by two per cent.

The news comes as no surprise to Andrew Kay, area manager at Rochdale Citizens Advice Bureau (CAB), who has a daily battle to save people’s homes.

He said: "We have seen a big increase in repossessions, but we have rescued a lot of people who otherwise would have been made homeless.

"Things are only going to get worse, especially if we think of the number of people who are going to be made redundant from the cuts."

Mr Kay said his office sees about 20 people a day – the majority facing debt or financial problems.

He added: "I can see the number of repossession claims doubling."

A mortgage claim is made by a lender when a householder falls into arrears.

It is the first stage of repossessing a property.

MP Simon Danczuk said potential interest rate rises would make the problem worse.

He added: "It is a terrible tragedy for anyone to lose their home but in the last few months there has been a sharp contraction in the UK economy and places such as Rochdale are suffering more than most.

"There are many people living on the breadline who are struggling to keep up with repayments and the shock to the economy has made it even more difficult.

"I am concerned that government policies such as putting up VAT and failing to introduce the fair fuel stabiliser to get to grips with high fuel prices are pushing up inflation.

"The knock-on effect is that interest rates will rise and put even more people at risk of repossession."

For help with mortgage problems call Rochdale CAB on 666676 or visit the office at 104/106 Drake Street.